Fruit and vegetable exports to ASEAN markets remain modest

Thailand ranks among the top importers of fruits and vegetables. Vietnam in ASEAN

According to data from the General Department of Customs, in February 2024, Vietnam's fruit and vegetable exports reached US$325.7 million, a slight increase of 1.4% compared to US$321 million recorded in the same period of 2023, but a significant decrease of 33% compared to January 2024. For the first two months of 2024, Vietnam's fruit and vegetable export turnover reached US$561.6 million, an increase of 11.8% compared to the same period of 2023.

In 2023, Vietnam exported $297.7 million worth of fruits and vegetables to the ASEAN market, focusing on four main markets: Thailand, Malaysia, Singapore, and Laos.

In February 2024, Vietnam's largest export market for fruits and vegetables was China, which grew by 8.4%, contributing to a total export value of $195 million. With this result, China accounted for 60% of Vietnam's total fruit and vegetable exports that month.

Besides China, Vietnam also exports fruits and vegetables to 28 other markets. Among them, South Korea was Vietnam's second largest export market for fruits and vegetables this month, with $19.2 million, a 13.6% increase in value compared to the same period in 2023. This was followed by the US with $17.1 million, a decrease of 8.8%; and Japan with $10.19 million, a decrease of 14.9%...

In February 2024, Vietnam exported fruits and vegetables to six ASEAN markets with a total value of US$19.31 million, a decrease of 13% compared to US$22.2 million recorded in the same period of 2023. Thailand was the largest export market with US$9.82 million, accounting for 50.8% of Vietnam's total fruit and vegetable exports to ASEAN.

Malaysia is the second largest export market for fruits and vegetables in the bloc with $4.11 million; followed by Singapore with $2.75 million; Cambodia with $1.19 million; Laos with $1.09 million and Indonesia with $0.35 million.

Within ASEAN, fruit and vegetable exports to Thailand increased by 18.7%, and to Cambodia by 22.6%. Conversely, the value of fruit and vegetable exports to Laos decreased by 67%, to Indonesia by 44%, and to Malaysia by 30% compared to the same period.

In 2023, Vietnam exported $297.7 million worth of fruits and vegetables to ASEAN, focusing on four main markets: Thailand, Malaysia, Singapore, and Laos. These are nearby markets, giving Vietnam advantages in logistics costs and import tariffs ranging from 0-5%, while some other markets apply tariffs of 30-40%.

Furthermore, the ASEAN market does not have stringent requirements regarding plant quarantine and food safety, making it suitable for businesses to test exports before expanding to more distant markets.

Therefore, experts believe that this export figure is still modest compared to the ASEAN market with over 690 million people; the export value of fruits and vegetables to the bloc should ideally be in the billions of USD.

Is expanding export opportunities easy?

Thailand is currently Vietnam's largest import market in ASEAN, allowing the import of five types of fresh fruit from Vietnam and is considering importing other fresh fruits such as rambutan, coconut, passion fruit, etc. Other markets such as Cambodia, Indonesia, Laos, Malaysia, and Singapore have no restrictions on the number of types of fruits and vegetables imported.

Ms. Le Thi Mai Anh, Head of the Southeast Asia (ASEAN) and Regional Cooperation Department under the Asia-Africa Market Division ( Ministry of Industry and Trade ), assessed that although ASEAN has great potential and a large market, it faces intense competition due to the relatively similar structure of agricultural products. Therefore, we can only export processed fruits and vegetables or fresh produce during off-season periods.

In addition, this market also has many trade barriers; therefore, if businesses focus solely on exporting fresh fruit, they will face many difficulties and intense competition.

Take the Thai market, for example, with over 66 million people. Getting Vietnamese agricultural products deeper into this country is no easy task, even though it has a diverse distribution network, creating many opportunities to penetrate these systems and reach Thai consumers.

Therefore, Ms. Le Thi Mai Anh recommends that businesses should focus on developing processed vegetable products and building attractive and suitable brands and designs, which will be a good direction to exploit this promising market.

On the other hand, to increase the export value of agricultural products in general and fruits and vegetables in particular to this market, Vietnamese businesses need to strengthen links with distribution channels as well as promote and boost trade.

Mr. Le Thanh Hoa, Deputy Director of the Department of Quality, Processing and Market Development ( Ministry of Agriculture and Rural Development ), also believes that Vietnam has many advantages to promote the export of fruits and vegetables in general.

Besides its production capacity, Vietnam also has dozens of free trade agreements, creating favorable conditions for negotiating market access for its fruit and vegetable products in many different markets.

To effectively exploit the potential of the export market in general, and the ASEAN market in particular, Mr. Le Thanh Hoa recommended that industries should organize production according to good practice standards for each type of fruit and vegetable, in line with customer requirements. Standardizing cultivation processes ensures monitoring of food safety hazards from planting, caring, harvesting, and processing. Simultaneously, it is necessary to build a supply chain, organizing production linked to trade, processing, and consumption both domestically and for export. Applying mechanization and technological advancements will improve quality and reduce the cost of fruit and vegetable products.

Source: https://congthuong.vn/xuat-khau-rau-qua-sang-thi-truong-asean-van-con-khiem-ton-309276.html